The £120 extra that people are able to put into a cash ISA that was announced in George Osborne’s autumn statement could work out at an increase of just £1.05 a year. Because of the staggeringly low rates of interest that are available at the moment, with not only the Bank of England maintaining a record low 0.5% base rate but the banks also slashing their rates, the rise in the ISA limit makes very little real difference.

The chief UK economist at Capital Economics, Vicky Redwood, believes this situation is not likely to change in the near future either: “Base rate will stay at 0.5 per cent until mid-2015. Banks have only just started taking money from the FLS and we expect the effects to persist.” The Funding for Lending Scheme (FLS) is relevant as the banks no longer need to rely on the money that people deposit into savings accounts to get income, instead able to draw on funds from the Bank of England.